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The influence of retail outlet and FSMA information on consumer perceptions of and willingness to pay for organic grape tomatoes

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  • Ellison, Brenna
  • Bernard, John C.
  • Paukett, Michelle
  • Toensmeyer, Ulrich C.

Abstract

The primary objective of this research was to determine the effect of retail outlet (supercenter, supermarket, farmers market, fresh format) on consumer perceptions of and willingness to pay (WTP) for organic grape tomatoes. Also examined was whether information on the proposed Food Safety Modernization Act (FSMA) regulations, with and without information on tomato safety, altered these aspects across retail outlets. Field experiments were conducted with 207 participants in two U.S. states in fall 2014 to address these questions. Consumers’ perceptions and WTP varied significantly by retail outlet, with farmers markets and fresh format stores receiving the most favorable evaluations and supercenters the least. With FSMA information, safety perceptions fell significantly for the favored outlets and mostly increased for supercenters. Participants’ felt no producers should be exempt from the FSMA and viewed farmers markets vendors as most likely to be exempt. Unexpectedly though, these changes seldom translated into changes in WTP. Further, in treatments with added tomato safety information, supercenters saw no safety rating benefit. Overall, it was clear the organic label was not viewed equally across different retail outlets.

Suggested Citation

  • Ellison, Brenna & Bernard, John C. & Paukett, Michelle & Toensmeyer, Ulrich C., 2016. "The influence of retail outlet and FSMA information on consumer perceptions of and willingness to pay for organic grape tomatoes," Journal of Economic Psychology, Elsevier, vol. 55(C), pages 109-119.
    • Handle: RePEc:eee:joepsy:v:55:y:2016:i:c:p:109-119
    DOI: 10.1016/j.joep.2016.05.002
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    2. Oluwagbenga Akinwehinmi & Kolawole Ogundari & Taye Timothy Amos, 2022. "Consumers’ food control risk perception and preference for food safety certification in emerging food markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 690-708, September.
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    4. Lijia Wang & Jianhua Wang & Xuexi Huo, 2019. "Consumer’s Willingness to Pay a Premium for Organic Fruits in China: A Double-Hurdle Analysis," IJERPH, MDPI, vol. 16(1), pages 1-14, January.
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    8. Khan, Muhammad Jawad & Atallah, Shadi S. & Kalaitzandonakes, Maria H. & Ellison, Brenna, 2022. "Consumer willingness to pay for products derived from diversified forests: the case of tree syrups," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322464, Agricultural and Applied Economics Association.
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    More about this item

    Keywords

    Organic; Willingness to pay; Retail outlet; Food Safety Modernization Act; Field experiment;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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